Shares of the state-run IDBI Bank fell over 3 percent to a one-week low Thursday after the Reserve Bank of India (RBI) imposed a fine of Rs 3 crore on it for failing to report bad loans in line with the central bank's guidelines.
The IDBI Bank stock dropped as much as 3.1 percent to Rs 69.8 on the BSE (Bombay Stock Exchange), the lowest since April 4.
The RBI, in a statement Wednesday (April 11) said that the penalty of Rs 30 million on IDBI Bank Limited is "for non-compliance with the directions issued by RBI on Income Recognition and Asset Classification (IRAC) norms".
The RBI's penalty will not have any material impact on the bank, IDBI said in a filing to the BSE.
Earlier, the stocks of IDBI Bank started trading Thursday with an opening price of Rs 70.50 after closing at 72.10 on the previous day.
The opening price of the stocks slipped by 3.5 points as compared to the Wednesday's opening price. The bank also provided an upper price band of Rs 79.30 and lower price band of 64.90 for the shares for the day.
At 12.08 pm, the shares of IDBI was trading lower by 1.15 at Rs 70.95.
IDBI is also among the list of 11 public sector banks (PSBs) that are placed under the RBI's Prompt Corrective Action (PCA) intended to encourage banks to improve operational efficiency.
In March, the central bank had imposed a penalty of Rs 58.9 crore on the private sector bank ICICI Bank for violating the directions issued by it on the direct sale of securities from held-to-maturity (HTM) portfolio.